Our Take on How the NAR Settlement Agreement and 2025 MO License Law Change Affect Missouri Licensees Regarding Buyer Agreements

If you are a real estate licensee in Missouri, by now, you most likely have been trying to function within the requirements of the Settlement Agreement entered into by the National Association of REALTORS^® (NAR) in conjunction with the federal class-action lawsuits in 2024. Like most real estate professionals all over the country, you are probably frustrated and confused. Maybe you have been told to just tell buyers that there is a new law and you can't show them properties unless they sign a buyer agency agreement with you (by the way, that's not exactly correct). So, we have decided to provide you with some facts so you can make your own decision as to what is right for your practice.

The NAR Settlement Agreement:

If you are a member of NAR and an MLS participant, you must comply with the Settlement Agreement. If you are not a member of NAR or your company or franchise has not opted in to the Settlement Agreement, you are not subject to the requirements of the Settlement Agreement.

When is a written agreement with the buyer required? A written agreement with the buyer is required:

if you are a member of NAR, any of the franchises that agreed to the Settlement or you or your company opted in to the Settlement;
the property is "a home";
before touring the home with the buyer; and
the home IS NOT listed with you or your firm or you are not working as a subagent of the seller.

A written agreement with the buyer IS NOT REQUIRED if you are:

showing the buyer a home listed with your company either as a seller’s agent or transaction broker OR
working as a disclosed subagent of the seller while showing the buyer homes listed with another broker OR
the property IS NOT RESIDENTIAL property.

The agreement DOES NOT NEED TO BE A BUYER AGENCY AGREEMENT; it can be a type of transaction broker agreement. It simply must be an agreement that includes the required elements set forth in the Settlement Agreement. The agreement must include a specific and conspicuous disclosure of the rate or amount of compensation the broker will receive or how the amount is determined, a statement that the broker will not receive any other compensation from any source and that the compensation is fully negotiable and not set by law. The broker's compensation must be objective (e.g. $0, a flat fee, a percentage of the sales price or an hourly rate) and cannot be open-ended (e.g. "whatever amount the seller is offering the broker").

What Does Missouri Law Say?

If You Don't Want to be the Buyer's Agent: Section 339.780 6. RSMO requires that a transaction broker who expects to receive compensation must enter into a written agreement with the party he/she is assisting. So, if you are assisting the buyer as a transaction broker and expect to receive compensation from the buyer, you must have a written agreement with the buyer. If you expect to receive compensation from the seller, you must have a written agreement with the seller. If you expect to receive compensation from the listing broker, you must have a written agreement with the listing broker. Remember, having a written transaction broker agreement with one of the parties does not overcome the presumption that you are also a transaction broker for the other party.

If You Want to be the Buyer's Agent: Effective August 28, 2025, the buyer agency agreement must be entered into with the buyer BEFORE engaging in any of the activities listed in Section 339.010 for the buyer. This means that, before you can show the buyer any properties, including your own listings, you must enter into a buyer agency agreement with the buyer. This also means that, if you are going to show the buyer a property listed with you or your company, you must have written permission in both the listing and the buyer agency agreement to either become a dual agent or transaction broker and then disclosed the change immediately to both the buyer and the seller.
1. What if the buyer won't sign a buyer agency agreement? You can show the buyer homes listed with you or your firm, but if you want to show the buyer a property that is listed with another broker, you may only do so as a seller's subagent or as a transaction broker. If the buyer refuses to sign the buyer agency agreement up front, you cannot later work as that buyer's agent in that property search.

What if the buyer refuses to sign anything? If you are a member of NAR or one of the franchises that opted in to the Settlement Agreement, you can't show the buyer homes that are on the MLS and listed with other brokers unless the buyer has signed an agreement that covers the required points listed in #3 above. You should call the Legal Line or talk to your own attorney to determine if you can simply have the buyer sign a disclosure or acknowledgment form that contains the required elements.

What if I'm Not a Member of NAR and haven't Opted In to the NAR Settlement Agreement?
1. Then the provisions of the Settlement Agreement don't apply to you and you should discuss with your own legal counsel the impact the August 28, 2025 change to Section 339.780 3. RSMo has on your firm's policies and procedures. If your firm doesn't practice buyer agency, then the change will have no impact on your policies and procedures.

REMEMBER: You cannot be an agent for the seller and a transaction broker for the buyer in the same transaction. If you are a transaction broker for one of the parties, you must be a transaction broker for the other party and remain neutral. You must have permission in both agreements to change from an agent to a transaction broker and inform both parties immediately when you make the change. If you are the seller's agent, you don't need a written agreement with the buyer. If you are NAR member, you only need a written agreement with the buyer if you are going to show the buyer HOMES listed with other brokers.